The hospital sector has been in focus lately after the CGHS rate revision. Jefferies, in its latest report analyses the sector dynamics in the backdrop of these change in the rates and identifies top stocks to focus on.

According to their analysis, “India’s major hospital chains can add only about 32,000 new beds over the next five years, translating into a 7% compound annual growth rate (CAGR) for the large players and a mid–single-digit expansion for the overall sector. In other words, the numbers don’t justify the panic.”

Jefferies on Hospital sector: Bed gap is too wide to overfill

The report underlines the sheer scale of India’s healthcare shortfall. The country currently operates about 2.4–2.5 million beds, with roughly 38% in government hospitals and 62% in private facilities.

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